GM strike is settled
UAW, GM reach tentative agreement By TOM KRISHER and DEE-ANN DURBIN, AP Auto Writers
1 hour, 22 minutes ago
DETROIT - The United Auto Workers and General Motors Corp. agreed Wednesday to a tentative contract that ends a two-day national strike - the first against the automaker in 37 years - and puts responsibility for retirees' health care into the union's hands.
GM and the UAW confirmed that the deal creates a GM-funded, UAW-run trust to administer retiree health care. The two sides gave no other details, but a person briefed on the contract told The Associated Press that it also would give workers bonuses and lump-sum payments and would pay newly hired workers at lower rates. The person requested anonymity because the contract talks are private.
The union said the agreement with the nation's largest automaker was reached shortly after 3 a.m. The UAW canceled the strike about an hour later and some workers could return as early as Wednesday afternoon.
The contract must be reviewed by local UAW presidents and will then be subject to a vote of GM's 74,000 rank-and-file members. The agreement is expected to set a pattern for contracts at Ford Motor Co. and Chrysler LLC.
The deal means UAW workers will head back to their jobs at around 80 GM facilities across the nation. The union went on strike at 11 a.m. Monday when talks broke down, ending GM's production and causing layoffs and shutdowns at parts factories.
It was the first nationwide strike against GM during auto contract negotiations since 1970. The UAW last struck GM in 1998, when a 54-day strike at two plants shut down production across the country.
GM said in a statement that the deal will make it significantly more competitive and provides "the basis for maintaining and strengthening its core manufacturing base in the United States."
The company went into the negotiations seeking to cut or erase what it said is about a $25-per-hour labor cost disparity with its Japanese competitors.
"This agreement helps us close the fundamental competitive gaps that exist in our business," Chairman and Chief Executive Rick Wagoner said.
The deal includes GM's top priority in the negotiations - shifting most of its $51 billion unfunded retiree health care obligation to a UAW-run trust. GM would pay about 70 percent of that obligation, or $36 billion, into the trust, called a Voluntary Employees Beneficiary Association, the person briefed on the talks said.
The union would then invest the money and take over the health care responsibility for about 340,000 GM hourly retirees and spouses.
"I'm pleased to say that we have a VEBA in place that will secure the benefits of our retirees," UAW President Ron Gettelfinger said at an early morning news conference inside the union's Detroit headquarters.
Gettelfinger said he's confident of ratification and that voting could start begin this weekend.
The UAW's national negotiating committee and executive board for GM both have unanimously recommended ratification, Gettelfinger said.
"We're very comfortable with this agreement, and we're happy to be able to recommend it to our membership," Gettelfinger said.
Union leaders will be briefed on details Thursday and Friday, he said.
The UAW may also decide Thursday whether to begin talks first with Ford or Chrysler. Those talks can begin before the GM contract is ratified, Gettelfinger said.
After ratification, the VEBA memorandum would have to be approved by the courts and would be reviewed by the U.S. Securities and Exchange Commission, GM said.
"There's no question this was one of the most complex and difficult bargaining sessions in the history of the GM-UAW relationship," Wagoner said. He thanked the UAW bargaining team for its work in reaching the agreement.
The person briefed on the talks said that because GM's pension fund has more money than its expected obligations, both sides agreed to tap into it to fund the trust.
Retirees would get a pension increase, but it would be offset by an equal increase in health care contributions, the person said.
Wages would stay the same for the length of the four-year deal, but workers would be given a bonus or lump sum payments every year, the person said. The size of the payments was not immediately available.
GM made no specific commitments to build cars and trucks at U.S. factories, but generally agreed that with the reduced costs from the new contract, investment in the plants would work, the person said.
The pact also includes a lower wage structure for newly hired workers in certain non-manufacturing jobs, the person said, adding that in order to make way for new hires, GM would offer early retirement and buyout packages to veteran workers.
The deal also includes language that mitigates the impact of the jobs bank, in which the company pays laid-off workers most of their salary and benefits, said the person.
Lloyd Coleman, 64, of the Detroit suburb of Taylor, was working his first picket line shift when he got word early Wednesday of the tentative agreement. He said he was withholding judgment until further details were released.
"I'm just wondering what we are giving up," said Coleman, a 31-year GM employee who for about the past year has worked as an electrician at a plant in Hamtramck. He said his biggest concerns include health care and bringing new products to existing GM plants.
Coleman said the VEBA holds promise.
"It's a big burden off the company," he said. "If it's managed right, it will be OK."
Negotiations between GM and the UAW officially began in July. Talks broke down Sunday night and workers walked off their jobs Monday when the strike deadline came and went.
Gettelfinger said the strike broke a logjam in the talks.
"I think the strike probably helped our side more than theirs," he said.
Industry analysts had predicted a short strike, saying the two sides had too much to lose from a prolonged work stoppage.
1 hour, 22 minutes ago
DETROIT - The United Auto Workers and General Motors Corp. agreed Wednesday to a tentative contract that ends a two-day national strike - the first against the automaker in 37 years - and puts responsibility for retirees' health care into the union's hands.
GM and the UAW confirmed that the deal creates a GM-funded, UAW-run trust to administer retiree health care. The two sides gave no other details, but a person briefed on the contract told The Associated Press that it also would give workers bonuses and lump-sum payments and would pay newly hired workers at lower rates. The person requested anonymity because the contract talks are private.
The union said the agreement with the nation's largest automaker was reached shortly after 3 a.m. The UAW canceled the strike about an hour later and some workers could return as early as Wednesday afternoon.
The contract must be reviewed by local UAW presidents and will then be subject to a vote of GM's 74,000 rank-and-file members. The agreement is expected to set a pattern for contracts at Ford Motor Co. and Chrysler LLC.
The deal means UAW workers will head back to their jobs at around 80 GM facilities across the nation. The union went on strike at 11 a.m. Monday when talks broke down, ending GM's production and causing layoffs and shutdowns at parts factories.
It was the first nationwide strike against GM during auto contract negotiations since 1970. The UAW last struck GM in 1998, when a 54-day strike at two plants shut down production across the country.
GM said in a statement that the deal will make it significantly more competitive and provides "the basis for maintaining and strengthening its core manufacturing base in the United States."
The company went into the negotiations seeking to cut or erase what it said is about a $25-per-hour labor cost disparity with its Japanese competitors.
"This agreement helps us close the fundamental competitive gaps that exist in our business," Chairman and Chief Executive Rick Wagoner said.
The deal includes GM's top priority in the negotiations - shifting most of its $51 billion unfunded retiree health care obligation to a UAW-run trust. GM would pay about 70 percent of that obligation, or $36 billion, into the trust, called a Voluntary Employees Beneficiary Association, the person briefed on the talks said.
The union would then invest the money and take over the health care responsibility for about 340,000 GM hourly retirees and spouses.
"I'm pleased to say that we have a VEBA in place that will secure the benefits of our retirees," UAW President Ron Gettelfinger said at an early morning news conference inside the union's Detroit headquarters.
Gettelfinger said he's confident of ratification and that voting could start begin this weekend.
The UAW's national negotiating committee and executive board for GM both have unanimously recommended ratification, Gettelfinger said.
"We're very comfortable with this agreement, and we're happy to be able to recommend it to our membership," Gettelfinger said.
Union leaders will be briefed on details Thursday and Friday, he said.
The UAW may also decide Thursday whether to begin talks first with Ford or Chrysler. Those talks can begin before the GM contract is ratified, Gettelfinger said.
After ratification, the VEBA memorandum would have to be approved by the courts and would be reviewed by the U.S. Securities and Exchange Commission, GM said.
"There's no question this was one of the most complex and difficult bargaining sessions in the history of the GM-UAW relationship," Wagoner said. He thanked the UAW bargaining team for its work in reaching the agreement.
The person briefed on the talks said that because GM's pension fund has more money than its expected obligations, both sides agreed to tap into it to fund the trust.
Retirees would get a pension increase, but it would be offset by an equal increase in health care contributions, the person said.
Wages would stay the same for the length of the four-year deal, but workers would be given a bonus or lump sum payments every year, the person said. The size of the payments was not immediately available.
GM made no specific commitments to build cars and trucks at U.S. factories, but generally agreed that with the reduced costs from the new contract, investment in the plants would work, the person said.
The pact also includes a lower wage structure for newly hired workers in certain non-manufacturing jobs, the person said, adding that in order to make way for new hires, GM would offer early retirement and buyout packages to veteran workers.
The deal also includes language that mitigates the impact of the jobs bank, in which the company pays laid-off workers most of their salary and benefits, said the person.
Lloyd Coleman, 64, of the Detroit suburb of Taylor, was working his first picket line shift when he got word early Wednesday of the tentative agreement. He said he was withholding judgment until further details were released.
"I'm just wondering what we are giving up," said Coleman, a 31-year GM employee who for about the past year has worked as an electrician at a plant in Hamtramck. He said his biggest concerns include health care and bringing new products to existing GM plants.
Coleman said the VEBA holds promise.
"It's a big burden off the company," he said. "If it's managed right, it will be OK."
Negotiations between GM and the UAW officially began in July. Talks broke down Sunday night and workers walked off their jobs Monday when the strike deadline came and went.
Gettelfinger said the strike broke a logjam in the talks.
"I think the strike probably helped our side more than theirs," he said.
Industry analysts had predicted a short strike, saying the two sides had too much to lose from a prolonged work stoppage.
0
-
Now enter the mafia.
[8D]barto[8D]0 -
Almost surprised that they didn't just move the whole shebang to mexico. 0 -
It's a shame GM isn't smarter with their employees and the unions. They've got some great vehicles, but they're screwing things up with their poor monetary choices. I hope this settlement helps them out though. I really want a Pontiac G8 GXP when it comes out... 0 -
quote:Originally posted by pickenup
Almost surprised that they didn't just move the whole shebang to mexico.
I spect that'll soon follow.0 -
That's all the retirees need - a union running their health insurance plan. Almost as bad as the government running it. 0 -
The deal includes GM's top priority in the negotiations - shifting most of its $51 billion unfunded retiree health care obligation to a UAW-run trust. GM would pay about 70 percent of that obligation, or $36 billion, into the trust, called a Voluntary Employees Beneficiary Association, the person briefed on the talks said. The union would then invest the money and take over the health care responsibility for about 340,000 GM hourly retirees and spouses.
That was the move that may well save the company and keep it operating in the United States for a few more decades.0 -
Do you think the UAW will invest the money in Toyota or Honda stock? 0 -
The membership is going to let the union have access to 30+ BILLION of their dollars? Blind and/or stupid is the only excuse I can think of. They squander union dues on donations to the Democrats, 150 million last election, and do it without permission. Unions, (when they were necessary and at one time they were) have ALWAYS been corrupt at the top. Difference this time is the corruption will be monumental.
Clouder..0 -
quote:Originally posted by iceracerx
Do you think the UAW will invest the money in Toyota or Honda stock?
Nah... Rumor has it they are buying Florida.0 -
They did the same thing to Federal workers some years ago and it's just now trickling down to GM.
Federal Civil Service now have to put their own money aside into a Thrift Savings Plan which is managed by some cronies somewhere. You can pick where you want to invest the money, government securities or the stock market. Both of which are not good investments.
American workers just keep getting shafted because CEO's keep making stupid mistakes that destroy their companies. Oh no....Ford made a Retro Mustang.....what should GM do?....oh we'll make a Retro Camaro and see if our pee'd off Camaro fans will forgive us for dropping that line in 2002. Morons....they should have brought back the El Camino, unibody pickup with a Vette Engine.0 -
quote:Originally posted by select-fire
Nah... Rumor has it they are buying Florida. Well, they can now afford to. I'm glad to hear the strike is over.0 -
quote: ....they should have brought back the El Camino, unibody pickup with a Vette Engine.
That would probably be a good move too.[:)]0 -
quote:they should have brought back the El Camino, unibody pickup with a Vette Engine.
if they did it would weigh 6000lbs and cost $60,0000
Please sign in to leave a comment.
Comments
13 comments